Financial service provider, Suncorp Group Limited (ASX: SUN) is going to pay a fully franked, special dividend of 8 cents per share in order to return around $100 million of capital to shareholders from the sale of its Australian Life Business.
The special dividend is having EX- Dividend date of 1 April 2019, the Record date of 2 April 2019 and Payment Date of 3 May 2019.
Recently in February 2019, the company sold its Australian Life Business to TAL Dai-ichi Life Australia Pty Ltd (TAL). The company expects to receive a total consideration of around $725 million from this sale. At the time of completion of the sale, the company had announced that it is expecting to return $600 million to its shareholders. Taking into consideration the special dividend announced today, now the company is expecting to return the remaining $500 million through pro-rata return of share capital and share consolidation, which required shareholder’s approval first.
For the half-year ended 31 December 2018, Suncorp Group delivered a net profit after tax of $250 Mn. During the period, The Australian Life Insurance business contributed after-tax profit of $25 million which has decreased by 50 percent reflecting reduced experience profits, partly offset by some one-off adjustments in the Wealth business. During the period, market adjustments were negative due to actual market rates which were lower than the company's longer-term investment return assumptions. Further, the total loss from discontinued operations also contains expenses of $155 Mn for write-down of goodwill and transaction and separation costs that occurred during the period.
During the half year period, the company witnessed a top-line growth of 3.2% despite a moderating banking environment, also experienced improvement in Insurance (Australia)’s underlying margins. During the half year period, the company’s net assets decreased to $13,624 Mn as at 31 December 2018 from $13,973 million at 30 June 2018. During the half year period, the company issued $600 million of subordinated debt through the Company as part of its capital management strategy, which was fully deployed to the Bank as Basel III compliant Tier 2 capital.
Now, let’s have a glance at the company’s stock performance and the return it has posted over the past few months. The stock is trading at a price of $13.440, up by 1.895% during the day’s trade with a market capitalisation of ~$17.13 billion as on 22 March 2019. The counter opened the day at $13.280 and reached the day’s high of $13.490 and touched a day’s low of $13.280 with a daily volume of ~3,501,313. The stock has provided a year till date return of 6.54% & also posted returns of -8.91%, 6.20% & 1.31% over the past six months, three & one-months period respectively. It had a 52-week high price of $15.878 and touched 52 weeks low of $12.120, with an average volume of ~ 3,484,225.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.